Govt. signs MoUs for housing equity assistance schemes, up to MVR 1M for Male' land plots

The government today signed a Memorandum of Understandings (MoU) with four financial institutions to implement the ‘Help to Build’ and ‘Help to Buy’ equity assistance schemes under the newly introduced National Home Ownership Program.

According to the Housing Ministry, the participating financial institutions are the Bank of Maldives (BML), Maldives Islamic Bank (MIB), Housing Development Finance Corporation (HDFC), and Maldives Finance Leasing Company (MFLC).

The agreement was signed on behalf of the Housing Minister by Minister Dr. Abdulla Muththalib. Representing the participating financial institutions were BML’s CEO and Managing Director Mohamed Shareef, MIB’s Managing Director Mufaddal Idris Khumri, HDFC’s Managing Director Ahmed Zeenad, and MFLC’s CEO and Managing Director Ibthishama Ahmed Saeed.

A landmark milestone for Home Ownership! Earlier today, the Ministry of Infrastructure, Housing and Urban Development (MIHUD) officially launched “Help to Build” and “Help to Buy” under the National Home Ownership Programme alongside leading financing partners: @bankofmaldives, @mibmv, @hdfcmaldives, and @mflcmv. Designed to dismantle upfront equity hurdles, this nationwide initiative offers direct financial backing to first-time homeowners through two dedicated tracks: Help to Build: Up to MVR 200,000 in equity support for home construction across Male’ and other inhabited islands. Help to Buy: Up to MVR 250,000 deducted directly from the purchase price for affordable PPP and market-rate housing units. #HousingForAll #NationalHomeOwnership

— Ministry of Infrastructure, Housing and Urban Dev. (@MIHUDmv) October 18, 2026

Citing research conducted under the Maldives Urban Development and Reconstruction Project (MUDRP), with technical assistance from the World Bank Group, the Ministry identified the inability of many Maldivian families to meet banks’ equity payment requirements as the primary barrier preventing them from building or purchasing homes.

The Ministry stated that the two components introduced today under the National Home Ownership Program are intended to address this barrier by providing financial assistance to landowners who have been unable to construct homes due to financial constraints, as well as to first-time homebuyers.

The Ministry stated that the program consists of two main pillars:

Help to Build

• The government will assist landowners who lack adequate housing in obtaining bank financing for construction.
• The scheme will apply to residential islands in Malé and the atolls, excluding Hulhumalé, Villimalé, Gulhifalhu, and Giraavarufalhu.
• The government will provide a grant of up to MVR 200,000 towards the equity payment for a loan of MVR 1 million.
• In cases involving shared family land with multiple owners, the government will provide MVR 200,000 per person, up to a maximum of MVR 1 million, towards the loan’s equity payment. This provision applies exclusively to land in Malé.
• Even if the loan amount exceeds MVR 1 million based on the building design and Bill of Quantities (BOQ), the maximum government assistance will remain capped at MVR 200,000 per person.

The Ministry clarified that the assistance will be provided as a non-repayable grant. However, if the property is sold within 20 years, the grant amount must be repaid to the state.

Help to Buy

• Affordable Housing: Assistance of up to MVR 250,000 will be provided towards the purchase of affordable housing units valued at MVR 1.5 million and developed through Public-Private Partnerships (PPP). This assistance is separate from the 2024 ‘Hiyaavehi’ scheme.
• Market Rate Units: First-time buyers purchasing units sold at market rates under real estate development models will also be eligible for assistance of up to MVR 250,000.
• The assistance will be paid directly to the developer through the participating financial institution and deducted from the total purchase price payable by the buyer.

The Ministry clarified that eligibility is limited to individuals who do not own any other developed land or property. It further stated that the land intended for development must be legally owned by the applicant or applicants. Although the primary purpose of the loan must be residential construction, partial commercial use of the resulting building will be permitted.